What to eye post Brexit
Investors should review their UK and European investments and possibly consider emerging markets and gold as an investment opportunity, according to industry experts.
BetaShares chief economist, David Bassanese, said as Brexit raised risks with UK and European investments, emerging markets could gain some attractiveness on a relative basis.
However, in light of Brexit, Bassanese said he preferred defensive high income investment opportunities in developed markets.
"Gold is likely to be the major beneficiary of coordinated monetary easing," he said.
Montgomery Investment Management founder, Roger Montgomery, warned that professional managed pension and super funds were investing in bonds with very low returns for extremely long periods.
Montgomery said events such as Brexit had caused a stampede toward security, and that had driven bond prices even higher and yields much lower.
"Investors are laying the groundwork for the next collapse in the value of their retirement savings," Montgomery warned.
Baby boomers were chasing high yielding blue-chip shares on an expensive Australian stock market, and low yielding bonds, he said.
"[They] are likely to suffer another destructive setback to their wealth and purchasing power before their days are up," Montgomery said.
But that may be one, two or three years away, Montgomery said.
Recommended for you
Milford is to launch three funds following consultation with financial advisers while closing two other strategies which hold a small volume of assets.
A founding member of fund manager IML is to depart the firm later this year after 27 years.
Magellan Financial Group reported outflows of $0.5 billion in February but saw a slight increase in its infrastructure division despite the exit of head Gerald Stack.
The global investment manager has unveiled two new diversified ETFs on the ASX targeting the next generation of Australian investors.
